As per the research, the global market for solar encapsulation is likely to grow from USD1,142.7 million in 2016 to USD5,167.3 by 2023. With the widespread adoption of renewable energy sources and increasing government initiatives to maximize the solar potential, the global solar encapsulation market is gaining traction. Additionally, increasing solar PV installations, growing applications of PV modules, rising power demands and technological advances made in the field of encapsulation material is expected to further spur the demand for solar encapsulation during the forecast period. The solar encapsulation market is in its nascent stage and the PV modules are used across various end-use industries such as construction, electronics and automotive.

Insights on market segments

As per the findings of research, the construction industry emanated the largest demand for solar encapsulation. Ethylene Vinyl Acetate (EVA) has been the largest revenue generator in the global market for solar encapsulation. Based on technology, single crystal/polycrystalline silicon technology dominated the global solar encapsulation market.

Asia-Pacific stands as the largest solar encapsulation market

Asia-Pacific accounted for the largest region in the global solar encapsulation market, where China contributed to the largest revenue. The U.S. was the major market for solar encapsulation in the North America, whereas Germany contributed to the largest revenue in the European region. Brazil was the largest market for solar encapsulation in Latin America, whereas the UAE generated the largest revenue in the Rest of the World market, which also includes Saudi Arabia, Algeria, South Africa and Egypt.

Growing demand in solar PV modules bolsters market growth

The factors driving the growth of the global solar encapsulation market include negligible product substitutes and the increasing demand for electricity due to the rapidly growing population. Despite being in nascent stage, solar encapsulation market poses great potential for growth in the near future owing to negligible substitutes available in the global market. Additionally, government initiatives such as tax benefits, market assessing programs and various renewable targets are expected to further spike the demand for solar encapsulation during the forecast period.

The increasing dominance of Ethylene Vinyl Acetate (EVA) over other encapsulant materials due to their lower prices and technical characteristics such as elasticity, adhesive property, high melt fluidity and low processing temperature, is expected to increase the demand for solar encapsulation during the forecast period. With the growing adoption of thin film cells, the need for alternative materials such as Polyvinyl Butyral (PVB) is gaining traction. This would further create growth opportunities for solar encapsulation during the forecast period.

Major companies such as Bridgestone Corporation, STR Holdings, Inc., E. I. du Pont de Nemours and Company, and First Solar, Inc. are heavily investing in R&D activities to increase the efficiency and durability of solar cells. This is expected to create huge market opportunities for solar encapsulation during the forecast period. Additionally, increasing developments in third generation perovskite solar cells and research in encapsulation of organic solar cells with polymeric resins is expected to further trigger the growth of global market for solar encapsulation.

The increasing demand for rooftop PV installations and rising application of EVA materials in photovoltaic cell lamination is expected to propel the demand for solar encapsulation during the forecast period. Additionally, the increasing consumption in the construction industry would further boost the demand for solar encapsulation during the forecast period. Solar encapsulation finds application in various residential, non-residential and utility sectors owing to excellent mechanical and chemical properties such as durability and thermal resistivity. Such trend is expected to boost the demand for solar encapsulation during the forecast period.

Asia-Pacific emerges as the largest market for solar encapsulation due to the increasing government focus towards increasing the solar potential through feed-in tariffs and anti-import duties. China and India contributes significantly to the global solar encapsulation market on account of increasing demand in PV installations and rising applications in the residential sector. The increasing disposable incomes and growing awareness towards reducing the carbon emissions have significantly increased the growth of solar energy in the residential sector.

Major players have stronghold in the global solar encapsulation market

Product launches and strategic expansion plans by key players have been the major recent developments in the global market for solar encapsulation. First Solar and STR Holdings are focusing on expanding their product portfolio worldwide in the solar encapsulation business by collaborating with foreign players and investing in new projects.